Contract Packing sector remains concerned at government’s Brexit progress Factory Suppliers Manufacturers Quotes

Contract Packing sector remains concerned at government’s Brexit progress

Contract Packing sector remains concerned at government’s Brexit progress

Contract Packing sector remains concerned at government’s Brexit progress

The uncertainty of Brexit has impacted labour supply, lack of clarity has halted investment and stalled critical decision making in the contract packing sector.

Contract Packing sector remains concerned at government’s Brexit progress

The uncertainty of Brexit has impacted labour supply while a lack of clarity has halted investment and stalled critical decision making, according to some contract packers.

Packaging News spoke to several companies who said they planned to keep an eye on costs in 2019, while also making strategic investments and preparing for Brexit.

The sector is going through a key trading period, the so-called golden quarter.

Paul Price, commercial director, Lemonpath, said his company had seen year-on-year growth, but delays within the supply chain have challenged the seasonal programme in gifting.

“To achieve greater certainty post-Brexit and greater understanding how the intended national living wage increments planned through to 2020 will aid industrial strategy,” he said.

Chris Hutchinson, operations director, Ceewhy Vancouver, said: “It will be dictated by Brexit, but I expect 2019 to be a better than national forecasts of doom.”

Managing finances and costs is seen as hugely important in the lead up to Brexit. Judith Leighton, managing director, APS, said: “We’ve enjoyed a sustained level of turnover for
the last three years. To diversify more, keep an eye on costs and make ourselves ready for a possible ‘no deal’.”

Glenn Lindfield, chief executive, Cyngia, said maintaining growth and costeffectiveness was important: “Which means adopting new technology to deliver unit cost improvements, increasing our
physical capacity and being continually innovative.”

Cannon Packing and Logistics’s marketing manager Sarah Johnson said there was still misconceptions that to work with a contract packing company is to lose control of the warehouse
and product: “We prefer to partner our customers and their in-house processes”.


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